SHARING OPPORTUNITY Pamula Corporation paid $279,000 for 90% of Shad Corporation's S 10 par common...
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SHARING OPPORTUNITY Pamula Corporation paid $279,000 for 90% of Shad Corporation's S 10 par common stock on December 31, 2014, when Shad Corporation's stockholders' equity was made up of $200,000 of Common Stock, $60,000 Additional Paid-in Capital and $40,000 of Retained Earnings. Shad's identifiable assets and liabilities reflected their fair values on December 31, 2014, except for Shad's inventory which was undervalued by $5,000 and their land which was undervalued by $2,000. Balance sheets for Pamula and Shad immediately after the business combination are presented in the partially completed working papers Eliminations Consoli- dated Balance Sheet Debit TamulaShad iCredit ASSETS Cash vable-net 20,001 30,000 125,000110,000 30,000 80,000 Inventories Plant assets -net 320,000 160 t in 279,000 Total Assets 800,000 $400,000 Current liabilities 110,000 $100,000 400,000 200,000 100,000 190,000 Additional paid 60 Retained TOTAL EQUITIES 800,0001 $400,000 Required: Complete the consolidated balance sheet working papers for Pamula Corporation and Subsidiary
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